The Wall Street Journal
HONG KONG–Auto parts supplier Visteon Corp. said Tuesday it is selling its 50% stake in its longtime Chinese joint venture and interests in other car-interior ventures to its partner, Huayu Automotive Systems Co., in a $1.25 billion cash deal.
Huayu Automotive–60% owned by SAIC Motor Corp. (600104.SH), China’s largest carmaker by sales– will buy the venture, Yanfeng Visteon Automotive Trim Systems Co., which makes car interior components such as dashboards and door panels.
Products in interiors category may include low-end electronics and the sector is characterized by low margins and intense competition.
At the same time, Visteon, which was spun off from Ford Motor Co. in 2000, is setting up a new JV with Huayu Automotive, focusing on vehicle electronics, which is Visteon’s current core business. Visteon will pay around $70 million to gain control of the new venture, Yanfeng Visteon Automotive Electronics Co.